This invention relates generally to stock price tracking apparatus and, more particularly, is directed to a stop loss annunciator for tracking a plurality of stop loss orders.
Investors in the stock market must continuously be aware of the price of their stocks in order to determine what further action to take, that is, whether to buy, sell or hold onto the stocks. In this regard, investors commonly use stop loss orders. A stop loss order is an order given to the broker to sell the stock at the market price if the stock price drops to a certain predetermined level. For example, a common indicator for a stop loss order is 10% of the then selling or market price, that is, if the stock price drops 10%, the broker has a standing order to sell the stock at the then market price.
As such, stop loss orders act as a safety net so that the investor can avoid major losses and also prevent complete devastation, particularly in the case of margin accounts. In a sense, stop loss orders are insurance that the stock price will not drop any further than a predetermined price.
However, for an investor with a large stock portfolio, it becomes difficult to keep track of a plurality of stop loss orders.